Quantum computing stocks could be the next big trend to unlock value for investors’ portfolios. These companies are pioneering a disruptive leap in processing power. This is likely to have wide-reaching applications in furthering our understanding of the sciences as well as the natural world.
In addition to their disruptive nature, quantum computing stocks are also relatively less expensive to buy. This is especially true when compared to more mainstream companies like AI, cloud, or cybersecurity. This is due to the technology still being in its infancy and has yet to reach commercialization.
Due to the youth of the quantum computing market, investors who buy into the right quantum computing stocks early could see multibagger returns on their investments.
Here are the best quantum computing stocks to consider.
Quantum Computing (QUBT)
Quantum Computing (NASDAQ:QUBT) specializes in nanophotonics-based quantum technology. The company offers commercial solutions that are cost-effective and low-power compared with its competitors.
There are some good reasons to consider adding QUBT stock to your portfolio. The company experienced an increase in sales for Q2 and the first half of 2023 compared to the previous year. Quantum Computing had a slight reduction in net loss and a decreased basic loss per share. This indicates a modest improvement in their financial performance.
Despite a significant net loss overall, the company has a solid gross margin of 47.14%. They also had a highly manageable debt with a Debt/Equity ratio of only 0.07. Additionally, the company’s market cap is relatively modest compared to its enterprise value. This means it may unlock strong gains for investors in the future.
This is the main reason for why bulls should be interested in QUBT stock due to its strong upside potential.
D-Wave Quantum (QBTS)
D-Wave Quantum (NYSE:QBTS) Is a Canadian company providing quantum computing systems, software, and services.
The bull case QBTS stock rests on its impressive third-quarter financial performance with a 51% increase in year-over-year revenue and a 50% sequential increase from the previous quarter, reaching $2.6 million. The company also achieved a 53% increase in total bookings year-over-year, marking its sixth consecutive quarter of such growth.
Some Wall Street analysts are also bullish on QBTS stock. Specifically, Roth Capital analyst Suji Desilva is optimistic about the brand, maintaining a “Buy” rating in September with a one-year price target of $5.00. Desilva notes the sector’s early stage but sees “clear promise” in the growing customer interest to solve complex problems with quantum computing.
Furthermore, QBTS may be undervalued based on its price-to-sales ratio of 16.36 time sales. Additionally, a forward price-to-sales ratio of 6.14 suggests higher revenue expectations in the future.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ:RGTI) develops quantum computers and superconducting quantum processors and provides a quantum-computing-as-a-service platform adaptable for various cloud setups.
RGTI is one of my favorite picks from this list of quantum computing stocks. The reason is that RGTI is one of the few that is charting a clear path toward breakeven profitability. For example, the company completed its first Quantum Processing Unit (QPU) sale to a national lab and signed a collaboration to develop quantum machine learning solutions last quarter.
As a penny stock, RGTI also offers investors potentially explosive total return potential. Some of this potential is acknowledged by Wall Street analyst consensus estimates. These experts forecast a 138.10% increase in stock price with an average 12-month target of $2.50, and a consensus rating of “Strong Buy.”
RGTI should therefore be heavily considered as one of those quantum computing stocks to earn multibagger returns.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines